Construction Industry in Mexico – Key Trends and Opportunities to 2018

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Main Title
Market Research Report 
Construction in Mexico Key Trends and
Opportunities to 2018  
reportscue
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Synopsis This report provides detailed market
analysis, information and insights into the
Mexican construction industry including
Mexican construction industry's growth prospects
by market, project type and type of construction
activity Analysis of equipment, material and
service costs across each project type in
Mexico Critical insight into the impact of
industry trends and issues, and the risks and
opportunities they present to participants in the
Mexican construction industry Profiles of the
leading operators in Mexican construction
industry. Data highlights of the largest
construction projects in Mexico
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Report OverviewThe Mexican construction
industry registered a compound annual growth rate
(CAGR) of 4.64 during the review period
(2009?2013). Growth was largely driven by a
change in Public Works Law, new industry and
economic policies, and a National Infrastructure
Plan (NIP). The industry is anticipated to
expand at a CAGR of 4.84 over the forecast
period (2014?2018), driven by growth in the
infrastructure market in line with government
measures to enhance transport infrastructure.
Industry expansion will also be driven by an
increase in population, government initiatives to
support the growth of high value-add industries,
and an expected revival in consumer confidence.
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Scope This report provides a comprehensive
analysis of the construction industry in Mexico.
It provides Historical (2009-2013) and
forecast (2014-2018) valuations of the
construction industry in Mexico using
construction output and value-add methods
Segmentation by sector (commercial, industrial,
infrastructure, institutional and residential)
and by project type Breakdown of values within
each project type, by type of activity (new
construction, repair and maintenance,
refurbishment and demolition) and by type of cost
(materials, equipment and services) Analysis
of key construction industry issues, including
regulation, cost management, funding and
pricing Detailed profiles of the leading
construction companies in Mexico
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Key Highlights After recovering from the
financial crisis, the Mexican construction
industry recorded a slowdown of 1.8 in 2013.
During the review period, the gross value-added
growth in construction peaked at an annual rate
of 10.6 (in nominal terms) in 2011, but activity
slowed in 2013, and a contraction of 1.7 was
registered in 2013. The outlook is different
for 2014 as the industry is anticipated to
register a value-added growth of 3.9 (in nominal
terms) generating 300,000 jobs. The industry is
set to grow further, both in 2014 and over the
forecast period, due to improved economic
conditions, low interest rates and increased
investment. With government commitment and
investment picking up, the industry is showing
signs of positive growth. The industrys value
add is projected to reach MXN1.5 trillion
(US94.8 billion) in 2018, representative of a
forecast-period CAGR of 3.24.  Under Mexicos
NIP 2014?2018, a series of infrastructure
projects will be launched to improve bridges,
ports, roads, highways, airports, railways and
power supplies, which will ultimately lead to the
modernization of the countrys infrastructure.
Public-private partnerships (PPPs) will be a
major source of investment. Mexicos National
Infrastructure Fund (Fondo Nacional de
Infraestructura) and the National Bank of Public
Works and Services (Banco Nacional de Obras y
Servicios Públicos) will also act as financial
providers to the plan. The government intends to
spend MXN7.8 trillion (US619.1 billion), of
which MXN1.3 trillion (US102.1 billion) is
expected to be spent on transport and
communication. According to the Secretariat of
Communications and Transport (SCT), investment in
roads under the plan is 36.0, higher than the
investment made under the previous government.
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In a bid to support the residential
construction market and develop affordable
properties for low-income demographics, a
co-operation agreement was signed between the
International Finance Corporation (IFC), a member
of the World Bank Group and the Mexican
homebuilder Urbi Desarrollos Urbanos in 2012. In
partnership with this agreement, financial
assistance of up to MXN1.4 billion (US105.0
million) will be granted to build
energy-efficient housing units for low income
demographics. Under this agreement, nearly
36,000 housing units must be constructed annually
until 2017, to overcome a housing deficit of 9
million units. This will generate 4,500 jobs
every year. The IFC will be providing assistance
in the form of MXN658.8 million (US50.0 million)
to Urbi, while Canada will make a contribution of
MXN263.5 million (US20.0 million) through the
IFC-Canada Climate Change Program. In addition,
an amount of MXN461.1 million (US35.0 million)
will also be provided through a syndicated loan
from international commercial banks.
Consequently, government-led affordable housing
projects are expected to encourage expansion in
the category over the forecast period. To
increase the annual inflow of tourists, it is
important that the Mexican government makes
efforts to ensure safety. According to the World
Economic Forums Travel and Tourism
Competitiveness Index 2013, Mexico ranked 121st
position out of 140 countries in terms of safety
and security. The drug war and associated
violence, kidnappings and mass murders have
adversely affected the countrys image as a safe
destination. The growth in tourism can be
attributed only to the countrys improving
economic conditions and a rise in industrial
activity, which improved employment
opportunities, and led to a rise in income and
expenditure. This will further support the growth
of the leisure and hospitality buildings category
over the forecast period. 
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Reason To Buy Identify and evaluate market
opportunities using our standardized valuation
and forecasting methodologies Assess market
growth potential at a micro-level with over 600
time-series data forecasts Understand the
latest industry and market trends Formulate
and validate business strategies using Timetric's
critical and actionable insight Assess
business risks, including cost, regulatory and
competitive pressures Evaluate competitive
risk and success factors To Get Details
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